Bootstrapping and the serial entrepreneur
Why could bootstrapping be an easier approach for the person seeking to start multiple companies or become a serial entrepreneur?
Here are some thoughts:
• Bootstrapping helps you start your company free from debt
• As a result companies with positive cash flow will have a shorter time to profitability
• No encumbrances of debt will make it easier to start a second company (more cash flow, less debt service)
• Additional businesses, like the first, will need less investment using the bootstrapping approach
• Lack of needed upfront investment means less chance of financial over extension with the only added cost being time
• Positive cash flow from an initial bootstrapped startup provides debt free financing for additional businesses.
Have some other points to add? Leave me a comment.
November 7th, 2007 at 4:45 pm
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November 16th, 2009 at 1:10 pm
okey